Simple setup of fibonacci in play here. Price has broken below the long term support of 0.6750. Now looking to see the price continue its next leg down towards 0.6500 region. As price broke down and retraced back up, price found resistance at 50% fibonacci level with a clear evening star formation on the 4H chart. Daily candle closed just below the 38,2% level.
Taking the dollar index as confluence, I believe it is safe to assume dollars strenght is starting to push the kiwi down to multi year lows of 0.6400 level or even lower.
With a short trade in mind I am quite happy to enter anywhere around 0.6650 level. Just for the sake of better risk reward I will let the price paint a clear picture on monday after the markets have opened.
On the week ahead we have NZD Q1 unemployment rate coming out. Should the numbers favor this short bias, I believe price will absolutely melt down to target 1 of 0.6500.
Taking the dollar index as confluence, I believe it is safe to assume dollars strenght is starting to push the kiwi down to multi year lows of 0.6400 level or even lower.
With a short trade in mind I am quite happy to enter anywhere around 0.6650 level. Just for the sake of better risk reward I will let the price paint a clear picture on monday after the markets have opened.
On the week ahead we have NZD Q1 unemployment rate coming out. Should the numbers favor this short bias, I believe price will absolutely melt down to target 1 of 0.6500.